Barnes and Noble 1998 Annual Report Download - page 36

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5
Results of Operations
The Company’s sales, operating profit, comparable store sales, store openings, store closings, number of stores open and square
feet of selling space at year end are set forth below:
Fiscal Year 1998 1997 1996
(In thousands of dollars)
Sales(1) $3,005,608 2,796,852 2,448,124
Operating Profit(1) $ 188,556 147,269 119,668
Comparable Store Sales Increase (Decrease)(2)
Barnes & Noble stores 5.0% 9.4% 7.3%
B. Dalton stores (1.4) (1.1) (1.0)
Stores Opened
Barnes & Noble stores 50 65 91
B. Dalton stores 4 4 10
Total 54 69 101
Stores Closed
Barnes & Noble stores 13 13 18
B. Dalton stores 43 53 72
Total 56 66 90
Number of Stores Open at Year End
Barnes & Noble stores 520 483 431
B. Dalton stores 489 528 577
Total 1,009 1,011 1,008
Square Feet of Selling Space at Year End (In millions)
Barnes & Noble stores 11.9 10.8 9.3
B. Dalton stores 1.9 2.0 2.2
Total 13.8 12.8 11.5
(1) Included in fiscal 1997 are sales and operating losses associated with barnesandnoble.com of $14,601 and ($15,395), respectively. Beginning in fiscal 1998 the Company’s
Consolidated Statement of Operations presents its equity in the results of operations of barnesandnoble.com as a single line item be l ow operating
profit in accordance with the equity method of accounting. The Company’s equity in the net loss of barnesandnoble.com for fiscal 1998 was ($71,334).
(2) Comparable store sales for B. Dalton stores are determined using stores open at least 12 months. Comparable store sales for Barnes & Noble stores are
determined using stores open at least 15 months, due to the high sales volume associated with grand openings. Comparable store sales increase (decrease) is
computed on a 52-week basis for fiscal 1996.
tools, including daily updated sales information, and is the leader
in business-to-business e-commerce with its unique Business
Solutions pro gr a m .
The Company further differentiates its product offerings
from those of its competitors by publishing books under its own
Barnes & Noble Books imprint for exclusive sale in its retail
stores, direct-mail catalogs and through barnesandnoble.com.
With publishing and distribution rights to over 2,000 titles,
Barnes & Noble Books offers customers high-quality books at
exceptional values, while generating attractive gross margins.
The Company also maintains an investment in Chapters
Inc., an Ontario company which is publicly traded on the
To ronto Stock Exchange. Chapters is the largest book retailer in
Canada and the third largest in North America*, operating 327
bo o k s t o res, including 52 superstores, as of the end of fiscal 1998.
* Based upon information reported in trade publications and public filings.